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Why Are Foreigners Happy with Bond 'Losses'? [Ep. 262, Eurodollar University]

Eurodollar University

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Why Are Foreign Investors Buying High and Selling Low?

Foreign investors buy Treasuries when they are expensive and offer low future returns. They exit their positions when treasury bonds are cheap e and offer high future returns. It's a mechanical relationship that is exactly upside down from any kind of investment strategy. Jeff, i heard you say that the central banks are buying when prices are high, but i think you meant to say they're selling when Prices are high so as to provide liquidity system. Where am i out to lunch? Again, it depends upon timing here, right?

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